Gov/en/Portal:Economy/Need-Driven-Funding: Difference between revisions
m AI-Admin-Assistant moved page Gov/en/Portal:Economy/Funding-Stabilizer to Gov/en/Portal:Economy/Need-Driven-Funding: Rename mechanism: Need-Driven Funding (Theo 2026-07-07) |
Add ExpertIntro (20-sec scientific summary), synthesis of existing content (Theo 2026-07-25) |
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{{KidsIntro|The Funding | {{KidsIntro|The Need-Driven Funding is a fair rule that decides how the monthly money is split. It makes sure the platform always keeps enough to run, then shares the rest between rewards and the community.}} | ||
{{ExpertIntro|Need-Driven Funding (formerly "Boost", "Balanced Boost" or "Funding Stabilizer", deprecated names) is WikiDeal's core financial formula: it divides monthly subscription revenue between Rewards for early supporters and Karma tokens for the ecosystem, according to the platform's financial health. A minimum operational budget of CHF 25,000 per month is always covered first; below that threshold, all available funds go to operations and core rewards, while above it the ecosystem share grows with revenue. The mechanism protects early supporters, the ecosystem and operations at the same time, and removes any benefit from stagnation.}} | |||
''Formerly known as Boost, Balanced Boost or Funding Stabilizer: those names are deprecated.'' | |||
The ''' | = Need-Driven Funding: The Subscription Distribution Formula = | ||
The '''Need-Driven Funding''' mechanism is WikiDeal's core financial formula. It determines how subscription revenue is divided between '''Rewards''' (paid to early supporters) and '''Karma tokens''' (contributed to the ecosystem) based on WikiDeal's financial health at any moment. | |||
== The Core Principle == | == The Core Principle == | ||
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* Administrative overhead | * Administrative overhead | ||
The | The Need-Driven Funding formula automatically adjusts the '''cash-to-Karma-token ratio''' to ensure this minimum is always met, while maximizing the flow of value back to the community. | ||
== The Formula == | == The Formula == | ||
''' | '''Need-Driven Funding Distribution:''' | ||
IF Monthly Subscription Revenue ≥ CHF 25,000: | IF Monthly Subscription Revenue ≥ CHF 25,000: | ||
• Rewards: Variable (remaining after minimum) | • Rewards: Variable (remaining after minimum) | ||
• | • Karma tokens: Balance (prioritized) | ||
IF Monthly Subscription Revenue < CHF 25,000: | IF Monthly Subscription Revenue < CHF 25,000: | ||
• Rewards: Priority (to meet minimum) | • Rewards: Priority (to meet minimum) | ||
• | • Karma tokens: Remainder only | ||
== How It Works: Two Scenarios == | == How It Works: Two Scenarios == | ||
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! Monthly Subscription Revenue | ! Monthly Subscription Revenue | ||
! Cash to Early Supporters | ! Cash to Early Supporters | ||
! | ! Karma tokens to Ecosystem | ||
! Decision | ! Decision | ||
|- | |- | ||
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The formula is called "Balanced" because it: | The formula is called "Balanced" because it: | ||
* '''Protects early supporters:''' They | * '''Protects early supporters:''' They receive a minimum redistribution if subscription revenue meets targets | ||
* '''Protects the ecosystem:''' As revenue grows, | * '''Protects the ecosystem:''' As revenue grows, Karma tokens flow increases exponentially, not linearly | ||
* '''Protects operations:''' The CHF 25,000/month minimum ensures governance and events never suffer | * '''Protects operations:''' The CHF 25,000/month minimum ensures governance and events never suffer | ||
* '''Creates incentives:''' Growing user adoption benefits everyone—no one benefits from stagnation | * '''Creates incentives:''' Growing user adoption benefits everyone—no one benefits from stagnation | ||
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* Operational minimum: CHF 25,000 | * Operational minimum: CHF 25,000 | ||
* Rewards (25%): CHF 25,000 | * Rewards (25%): CHF 25,000 | ||
* | * Karma tokens (remaining): CHF 50,000 | ||
''Early supporters receive their share; ecosystem gets most.'' | ''Early supporters receive their share; ecosystem gets most.'' | ||
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* Operational minimum: CHF 16,667 (all available) | * Operational minimum: CHF 16,667 (all available) | ||
* Rewards: CHF 8,334 (50% of total) | * Rewards: CHF 8,334 (50% of total) | ||
* | * Karma tokens: CHF 8,334 (50% of total, still contributes) | ||
''No surplus; everything goes to operations and core rewards.'' | ''No surplus; everything goes to operations and core rewards.'' | ||
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* Operational minimum: CHF 25,000 | * Operational minimum: CHF 25,000 | ||
* Rewards (25%): CHF 104,167 | * Rewards (25%): CHF 104,167 | ||
* | * Karma tokens (remaining): CHF 287,500 | ||
''Explosive ecosystem growth; early supporters well-rewarded; operations fully funded.'' | ''Explosive ecosystem growth; early supporters well-rewarded; operations fully funded.'' | ||
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'''This is not fixed forever.''' As WikiDeal scales, operational costs may increase (more events, larger team, etc.). The formula will adjust accordingly, but the principle remains: operational health comes first, ecosystem growth second. | '''This is not fixed forever.''' As WikiDeal scales, operational costs may increase (more events, larger team, etc.). The formula will adjust accordingly, but the principle remains: operational health comes first, ecosystem growth second. | ||
== | == Karma tokens vs. Cash: The Trade-Off == | ||
In early, bootstrapping phases, there's an important trade-off: | In early, bootstrapping phases, there's an important trade-off: | ||
'''⚠️ When revenue is tight:''' More cash goes to operations, fewer | '''⚠️ When revenue is tight:''' More cash goes to operations, fewer Karma tokens flow to the community. This is intentional. It's better to have a stable, well-run ecosystem with slower Karma tokens growth than an underfunded one that collapses. | ||
However, as WikiDeal grows, ''' | However, as WikiDeal grows, '''Karma tokens accelerate exponentially''' because the operational minimum becomes a tiny fraction of total revenue. | ||
== Transparency & Auditing == | == Transparency & Auditing == | ||
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* Total subscription revenue | * Total subscription revenue | ||
* Cash and | * Cash and Karma token distributions (absolute and percentage) | ||
* Operational spending against the CHF 25,000 budget | * Operational spending against the CHF 25,000 budget | ||
* Cumulative totals toward the CHF 500M break-even target | * Cumulative totals toward the CHF 500M break-even target | ||
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== The Long-Term Vision == | == The Long-Term Vision == | ||
Need-Driven Funding is designed to be '''self-liquidating.''' As subscription revenue grows and early supporters' initial contribution is repaid (via the 25% allocation in the [[Gov/en/Portal:Economy/Subscriptions|four-lot model]]), their need for rewards diminishes. Eventually, nearly 100% of subscription revenue can flow to ecosystem Karma tokens and community projects. | |||
This creates a natural evolution: | This creates a natural evolution: | ||
* '''Years 1–3:''' Balanced (cash ↔ | * '''Years 1–3:''' Balanced (cash ↔ Karma tokens) | ||
* '''Years 3–5:''' | * '''Years 3–5:''' Karma-token-heavy (70–80% Karma tokens) | ||
* '''Years 5+:''' Ecosystem-first (90%+ | * '''Years 5+:''' Ecosystem-first (90%+ Karma tokens) | ||
WikiDeal transforms from a startup (needing to repay founders) to a commons (where value flows to participants). | WikiDeal transforms from a startup (needing to repay founders) to a commons (where value flows to participants). | ||
[[Category:Migration June 2026]] | [[Category:Migration June 2026]] | ||
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